Staffing

Successful employee evaluations

Proper preparation and a suitable format set the right tone and help staff become more productive.

BY SHEREE H. CHRISTIAN, BBA, COE, OCS

Employee evaluations often create a feeling of dread in both managers and employees. A 2014 Forbes article reported that 45% of human resource leaders don’t think evaluations are an accurate appraisal of an employee’s work. If that wasn’t enough, 30% of performance reviews actually end up decreasing performance. However, with thoughtful preparations and proper execution, evaluations can provide a formal method for giving and receiving feedback, thus motivating employees to work toward the same vision and practice goals.

Successful employee evaluations include careful thought regarding the following elements.

Timing

Effective evaluations are timed to create job success. The first evaluation should coincide with the end of the employment introductory period after the employee has settled into the new position (typically after two or three months of employment). If the employee progresses slower than expected yet still shows potential, extend the introductory period and schedule another performance evaluation at its termination.

After the introductory period and subsequent employee evaluation, future evaluations typically occur annually. If an employee changes positions in the practice, a new introductory period should begin with an employee evaluation performed at its end.

Preparation

When preparing to conduct an employee evaluation, pay attention to the following:

• Performance standards. Every position should have performance standards in place. These standards describe each particular job’s expectations and provide guidelines for their accomplishment. When preparing for an employee’s evaluation, review the standards to ensure that they are achievable and pertinent to the position.

• Job description. While preparing for the evaluation, you may find that duties changed and, therefore, that you need to update the employee-specific job description to rightly reflect the position expectations. Job descriptions are living documents that should reflect what the job presently entails. Plan to go over any modifications, additions, or deletions with the employee, further changing the job description if the employee’s suggestions warrant it.

• Evaluation forms. Some practices like to incorporate a “360-degree review.” As the name implies, this includes feedback from a relevant circle of people who interface with the employee, to include subordinates, peers, and supervisors. For example, your CPA might have input from interaction with your bookkeeper, or doctors might have feedback regarding scribes and technicians. Also, self-evaluation is a powerful tool for learning how employees feel about their own performance. Forms will help you solicit more relevant information by asking open-ended questions that require some thought. Search the Internet for sample forms that can aid in creating your own form. Different positions require different forms; however, once created, they often can be used year after year with little or no tweaking. Rather than using open-ended questions, some employers prefer a numerical score for each area evaluated on the form. This method is easier to tabulate and may feel less subjective to the employee.

Wipe away the dread of evaluations with thoughtful preparations and proper execution.

Conducting the evaluation

Discuss what is going well. Be as specific as possible, using examples when appropriate. Employees need to know what they are doing right so that they are motivated to continue and to build on it. Avoid using statements like, “You did a wonderful job creating and organizing practice forms, however….” As soon as you qualify the praise, the punch is lost. Try to restrict yourself to positives when motivating.

Next, move on to the areas that you feel need improvement. If there is a severe breakdown in performance, the employee needs to be brought to account, disciplined if necessary, and put on a corrective action plan (which, as manager, will likely fall on your shoulders to define and administer). However, if deficiency areas are mild in nature, then the goal is to tactfully, yet decisively, nip the behavior in the bud, supplying training as needed.

In the case of minor deficiencies, first define clearly the shortcomings, then enlist the help of the employee for solutions. Employees many times understand a situation better than management does. Sometimes the solution is as simple as supplying the employee with the correct tools to do her job. Second, develop an action plan (e.g., get a new computer, take an Excel course, keep breaks within allowed time frames, etc.). Third, you should establish a timeline for completion and reevaluation.

Setting goals

This final step of the evaluation is different than the corrective action taken when reviewing shortcomings. Rather than righting a wrong, this step is meant to establish or raise a standard.

I look at two areas in goal setting:

1. Ascertain the goals the employee may have. Ask what he would like to work on over the next year to help improve his department. Many employees know what actions would improve their work area, and can contribute greatly in setting goals for their position. In addition to the impact on the department or practice, consider the employee’s personal growth.

2. Conform the employee goals to the broader practice goals. Ideally, the practice’s goals will shape those of the departments, which, in turn, should direct the goal-setting efforts for each employee. Maintaining this vital chain is necessary to ensure that everyone in the practice is moving in the same direction. For example, if a practice wants to lower accounts receivables aged over 90 days, the billing department might respond by directing that all denied claims and refunds be worked at the time of posting payments and that the status of appeals be checked weekly. If the employee is a receptionist, the practice might set a personal goal of collecting total patient balances from at least 95% of patients at the time of service.

Caveats

Evaluate performance and avoid addressing attitude, especially in writing. The employee may misconstrue a written evaluation of attitude as discrimination, which could land you before a judge. Use concrete, job-based examples when giving criticism.

Also, avoid inflating the evaluation. If, for instance, a mediocre employee is likable, it can be easy to elevate him to an undemonstrated level of competence. Be fair but realistic in your evaluation, regardless of positive but irrelevant qualities exhibited by the employee. If you eventually discharge the employee due to poor performance, your previously careless evaluation may come back to bite you.

Follow-up

Formal employee evaluations may come once a year, but don’t wait that long to give feedback. Employees need to know that you notice their efforts and that they are on the right track. Check in with them periodically to see how they are doing, and ask if they need any help from you. Start an employee performance log to aid in the next formal evaluation, which you can review when preparing for the next evaluation.

You can avoid many potential problems by being attentive to employee progress and shortcomings throughout the year, and by providing praise and training as appropriate. Following this approach will eliminate most, if not all, surprises at the formal employee evaluation. OP

Ms. Christian is a medical consultant based in Eugene, OR. With 18 years of experience as an ophthalmic professional, she has worked as a practice administrator at Oregon Retina, LLP, Oregon Eye Associates, Shasta Eye Medical Group and Cochise Eye & Laser. Email Ms. Christian at shc2008@gmail.com.